Stock Trades at 19% of BV and 46% Net Cash

KRLTF = .66 USD on 12/26/14 (note Canadian to USD exchange rate .862 see latest rate) 12/31/14 KRN.TO last traded at .82 therefore the fair price of KRLTF based on .862 exchange rate would be .706. Dont pay more than the more liquid KRN.TO price converted to USD using current exchange rates.

Company Description;

Karnalyte intends to explore and develop high quality agricultural and industrial potash and magnesium products. Once financing is obtained for potash plant construction, Karnalyte plans to operate a solution mining facility that will initially produce 625,000 tonnes of potash per year, increasing to 2.125 million tonnes of potash per year. Karnalyte owns a 100% interest in Subsurface Permit KP 360A and Subsurface Mineral Lease KLSA-010 located near Wynyard, Saskatchewan , comprising a total of 85,126 acres.

Catalysts Summary:

1)Margin of safety, Net Cash of 1.54CND versus a market price of KRN.TO at .77CND or KRLTF = .66USD.

2)Activist campaign started December 2014 by founder, former CEO (retired May 2014), and largest shareholder.

3)Gujarat StateFertilizers invested 44.74M for a 19.8% stake in Karnalyte. This private placement occurred January 2013 for a per share price of 8.15 Canadian Dollars.Note difference in current price versus price invested by Gujarat State Fertilizer at 8.15.

The Concerned Shareholder Group is dismayed and
concerned about the following...Lack of leadership, Lack of strategic oversight
and direction, Lack of alignment in interests between the board and
shareholders.

"Since announcing the formation and
aggregate shareholdings of the Concerned Shareholder Group onDecember 10, 2014, I
have reached out to the incumbent board with a view to working together to
effect the requested changes to get our Company back on track to building long
term shareholder value as quickly as possible. In response, the incumbent
board requested a member of the Concerned Shareholder Group to execute a
confidentiality agreement so that the parties can discuss 'important developments at Karnalyte that have not been publicly disclosed'. As the second largest shareholder in Karnalyte, I
was disturbed by this request as Karnalyte is required under securities law and
the rules of the Toronto Stock Exchange to publicly disclose material changes
and information. Moreover, as shareholders, we should all be entitled to
be informed in a timely manner about important developments at our Company.”